For one South Carolina couple, the cumulation of their life’s savings was stolen from underneath them without warning.
After buying a property outside of Boston with plans to build a house and retire, they found out that it no longer belonged to them after they asked about a missing quarterly tax bill.
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“They stole our dream,” Dr. Omar Jaraki told Boston CBS affiliate WBZ. They stole our property. They took a mortgage on it. They’re building a house on it.
Through their own investigation, Jaraki found out that someone pretending to be his wife, Halla, contacted a local real estate agent to sell the property. After a shortlisting, it was sold for $525,000 — nearly 50% of its actual value. To close the deal, the scammers sent fraudulent documents to the real estate agent, including scans of a fake South Carolina driver’s license and passport allegedly belonging to Halla.
With the transaction complete, the sales money was wired to a bank account before being sent overseas. Now, a home is being constructed on the property, leaving the Jaraki’s working with an attorney to determine the best way to get their home back — and what to do with the home that is being built on it.
How property fraud can lead to stolen land
Property fraud consists of two crimes happening simultaneously: identity theft and mortgage fraud. While one of those alone can be devastating, both of them together can lead to property theft without the actual owners being involved.
At a high level, the U.S. Department of Justice defines identity theft as a crime “in which someone wrongfully obtains and uses another person’s personal data in some way that involves fraud or deception.”
There are several ways identity theft can happen, ranging from mass data breaches to simply pre-approved credit card offers from your mail or trash. With the right combination of information, an identity thief can use your information to open credit lines in your name, add authorized users to your credit cards, or access current bank accounts or mortgages.
Mortgage fraud is the second part that directly contributes to property theft. The U.S. Treasury Financial Crimes Enforcement Network identifies the biggest cause of mortgage fraud as providing false statements during the process. This includes providing fake documentation, which includes altered bank statements and forged documents.
For the Jaraki family, both of these situations contributed to their property being stolen without their knowledge. Using their personally identifiable information, the fraudsters used fake documents and online technology to steal their identity and ultimately sell the property illegally.
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How can homeowners fight property fraud?
For the Jarakis, they found out too late to do anything about their situation. However, they are not giving up. They have retained an attorney and are taking both the buyer and the lawyers involved to court over the sale.
To help stop property fraud, many U.S. counties are offering free monitoring services that will notify homeowners when a change is made to public records in their name. Services are offered through companies like Property Fraud Alert and Landex. They send email and text alerts when a change is detected, allowing homeowners to get ahead of a situation and take the necessary precautions to protect their property.
If you are purchasing a lot but have questions about the ownership or sales process, consider getting title insurance before closing. Owner’s title insurance can protect a property buyer from any claims that may result while transferring the property. This includes legal claims from tax liens, contractors who claim they are owed money, or as in this situation, claims that the property was fraudulently sold.
Finally, experts recommend freezing your credit until you apply for new accounts. Placing a credit freeze on your account may prevent unwanted users from accessing your personal data. Adding a fraud alert to the credit report requires creditors to verify your identity before deciding on an application you, or someone else pretending to be you, submit.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
